On child poverty, choosing services over benefits is a progressive dead end

Labour must prioritise investment in universal childcare alongside income support, rather than simply trading one off against the other.

Are investments in services a better way of reducing child poverty than benefits that support income? ‘Yes’ argued IPPR director Nick Pearce this week when he called on Labour to find a new way to tackle child poverty that doesn’t rely on cash transfers, but instead builds institutions that attract popular support and can’t be dismantled at whim.

Much of what Nick says, as you would expect, makes good sense. Most would agree that a child poverty strategy that relies solely on benefits to prop up families’ incomes is neither effective nor sustainable. But equally, a strategy that regards children’s centres and expanded childcare as the only answer to the child poverty problem is also likely to be ineffectual.

The UK and the international evidence suggests that choosing services over benefits is a false choice and a progressive dead end.

Labour’s commitment to end child poverty drove action to (i) make work pay (ii) invest in childcare and early years services, and (iii) boost the incomes of families with children using the tax and benefits system. As a result, between the mid-1990s and 2008 the UK had the largest reduction in child poverty in the OECD. This unprecedented success was because a broad approach was pursued, not because the child poverty strategy was reduced to a simplistic choice of benefits over services. 

It is right to point out that those countries with low child poverty rates generally have higher rates of parental employment than the UK, but they certainly don’t achieve this at the expense of family benefits. OECD data shows that the Nordic countries all provide children’s benefits at broadly the same level as the UK and also provide other, more generous, benefits to families. The difference between us and them is that they prioritise investment in universal childcare alongside income support rather than simply trading one off against the other.

The spending switch we need to make is from spending billions dealing with the costs of child poverty to investing in preventing child poverty in the first place.

This is not about making tough choices as we pitch progressive ideas  - ‘childcare vs. child benefit’ - against each other. It’s actually more ambitious and urgent than that. Instead, it is a big decision to get the fundamentals rights -  to make our society fairer and our economy stronger -  which requires us to rethink public spending across the whole of government.

We know that without widespread public support, even policies proven to reduce child poverty are at the mercy of, sometimes unforgiving, political and economic forces.

Yet the appropriate response to evidence of declining public support, such as the analysis of existing polling published by Joseph Rowntree Foundation this week, is surely not just to build popular institutions but to also build a popular consensus around poverty reduction that can weather the bad times as well as good.

As others have noted, it is simply not correct to conceive attitudes as something solid and immovable.  We know polls show that the public regard the welfare state as one of the country’s finest achievements and, in future, there’s good reason to believe that rising living costs and falling living standards will be an important election battleground issue.

It’s worth bearing in mind that the policies that will make a difference to poverty  - investment in child benefit, affordable housing, childcare and decent jobs – are likely to be popular. Politicians may just find that showing leadership and championing policies that tackle poverty may have electoral as well as child poverty pay offs, too. 

A girl paints a wall in the Heygate Estate in the Walworth area on April 24, 2013 in London. Photograph: Getty Images.

Alison Garnham is chief executive of the Child Poverty Action Group

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The strange death of boozy Britain: why are young people drinking less?

Ditching alcohol for work.

Whenever horrific tales of the drunken escapades of the youth are reported, one photo reliably gets wheeled out: "bench girl", a young woman lying passed out on a public bench above bottles of booze in Bristol. The image is in urgent need of updating: it is now a decade old. Britain has spent that time moving away from booze.

Individual alcohol consumption in Britain has declined sharply. In 2013, the average person over 15 consumed 9.4 litres of alcohol, 19 per cent less than 2004. As with drugs, the decline in use among the young is particularly notable: the proportion of young adults who are teetotal increased by 40 per cent between 2005 and 2013. But decreased drinking is not only apparent among the young fogeys: 80 per cent of adults are making some effort to drink less, according to a new study by consumer trends agency Future Foundation. No wonder that half of all nightclubs have closed in the last decade. Pubs are also closing down: there are 13 per cent fewer pubs in the UK than in 2002. 

People are too busy vying to get ahead at work to indulge in drinking. A combination of the recession, globalisation and technology has combined to make the work of work more competitive than ever: bad news for alcohol companies. “The cost-benefit analysis for people of going out and getting hammered starts to go out of favour,” says Will Seymour of Future Foundation.

Vincent Dignan is the founder of Magnific, a company that helps tech start-ups. He identifies ditching regular boozing as a turning point in his career. “I noticed a trend of other entrepreneurs drinking three, four or five times a week at different events, while their companies went nowhere,” he says. “I realised I couldn't be just another British guy getting pissed and being mildly hungover while trying to scale a website to a million visitors a month. I feel I have a very slight edge on everyone else. While they're sleeping in, I'm working.” Dignan now only drinks occasionally; he went three months without having a drop of alcohol earlier in the year.

But the decline in booze consumption isn’t only about people becoming more work-driven. There have never been more alternate ways to be entertained than resorting to the bottle. The rise of digital TV, BBC iPlayer and Netflix means most people means that most people have almost limitless choice about what to watch.

Some social lives have also partly migrated online. In many ways this is an unfortunate development, but one upshot has been to reduce alcohol intake. “You don’t need to drink to hang out online,” says Dr James Nicholls, the author of The Politics of Alcohol who now works for Alcohol Concern. 

The sheer cost of boozing also puts people off. Although minimum pricing on booze has not been introduced, a series of taxes have made alcohol more expensive, while a ban on below-cost selling was introduced last year. Across the 28 countries of the EU, only Ireland has higher alcohol and tobacco prices than the UK today; in 1998 prices in the UK were only the fourth most expensive in the EU.

Immigration has also contributed to weaning Britain off booze. The decrease in alcohol consumption “is linked partly to demographic trends: the fall is largest in areas with greater ethnic diversity,” Nicholls says. A third of adults in London, where 37 per cent of the population is foreign born, do not drink alcohol at all, easily the highest of any region in Britain.

The alcohol industry is nothing if not resilient. “By lobbying for lower duty rates, ramping up their marketing and developing new products the big producers are doing their best to make sure the last ten years turn out to be a blip rather than a long term change in culture,” Nicholls says.

But whatever alcohol companies do to fight back against the declining popularity of booze, deep changes in British culture have made booze less attractive. Forget the horrific tales of drunken escapades from Magaluf to the Bullingdon Club. The real story is of the strange death of boozy Britain. 

Tim Wigmore is a contributing writer to the New Statesman and the author of Second XI: Cricket In Its Outposts.